Rockwell Diamonds Inc.
OTC Bulletin Board : RDIAF
JSE : RDI
TSX : RDI

Rockwell Diamonds Inc.

June 12, 2008 09:00 ET

Rockwell Completes its Fourth Diamond Sale of 2008

Excellent margins on sales of stones manufactured in terms of Steinmetz Joint Venture

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 12, 2008) - Rockwell Diamonds Inc. ("Rockwell" or the "Company") (TSX:RDI)(OTCBB:RDIAF)(JSE:RDI) reports on its fourth diamond sale in calendar 2008, completed on May 22, 2008.

The Company offered a total of 2,142.52 carats for sale, representing diamond production for most of the month of April 2008 from the Wouterspan, Holpan and Klipdam mining operations.

Rockwell realized total revenue of US$2,555,471 for this sale, representing an average price of US$1,192 per carat. Sales details from production from the individual operations are tabulated below. Rockwell receives 74% of the revenues from the sale of the diamonds from these operations.



--------------------------------------------
SALES AVERAGE PRICE
OPERATION (CARATS) (US$ PER CARAT)
--------------------------------------------
Wouterspan 475.92 1566
--------------------------------------------
Holpan 680.72 1500
--------------------------------------------
Klipdam 985.88 800
--------------------------------------------
TOTAL 2142.52 1192
--------------------------------------------


As was the situation for its previous diamond sales, prices achieved for the diamonds sold in the latest (May) tender showed strength in all categories. Top prices of US$26,161 per carat and US$10,193 per carat were achieved on 20.09 carat and 12.45 carat stones from Holpan and Wouterspan, respectively.

The distribution of diamonds larger than 10 carats sold in this latest sale by Rockwell was as follows:

- 10 stones of 10 - 20 carats

- 8 stones of 21 - 30 carats

- 1 stone of 30 - 40 carats

- 1 stone of 115 carats of boart (industrial diamond) quality

During May 2008, two of the Company's diamonds that were manufactured and sold in respect of the Steinmetz Diamond Group joint venture were sold. Margins of 10% and 17% over and above the original rough diamond sales prices were achieved by Rockwell on these two stones.

Diamond production in this period was achieved at an operating cost of approximately US$3.60 per tonne.

President and CEO, John Bristow, noted, "The prices achieved are indicative of the on-going strong demand for Rockwell goods. Although the overall prices realized were somewhat lower than past sales, the prices achieved were in line with the qualities sold. Had the 115 carat diamond sold in the latest sale not been a poor quality boart (industrial) stone, the overall average sale price would have been much higher.

Most encouraging were the margins realized on the two cut and polished stones manufactured and sold via the Steinmetz joint venture. With a number of stones now in the joint venture pipeline, we are expecting the real benefits of this added value process to come through."

John Bristow, President and CEO

Forward Looking Statements

This release includes certain statements that may be deemed "forward-looking statements". Other than statements of historical fact all statements in this release that address future production, reserve or resource potential, exploration drilling, exploitation activities and events or developments that each Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. There is no certainty of the financing completing. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, changes in and the effect of government policies regarding mining and natural resource exploration and exploitation, availability of capital and financing, geopolitical uncertainty and political and economic instability, and general economic, and market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. For more information on Rockwell, Investors should review Rockwell's annual Form 20-F filing with the United States Securities and Exchange Commission www.sec.com and the Company's home jurisdiction filings that are available at www.sedar.com.

No regulatory authority has approved or disapproved the information contained in this news release.

Contact Information

  • Rockwell Diamonds Inc.
    Susie Bell
    Investor Services
    (604) 684-6365 or within North America: 1-800-667-2114
    (604) 662-8956 (FAX)
    Website: www.rockwelldiamonds.com